What are the options when changing employers while having a 401(k)?

When changing employers, an individual with a 401(k) plan typically has multiple options regarding their retirement savings. The correct answer encompasses the most comprehensive choices available.

Leaving the money in the old employer’s plan allows the individual to maintain their investment, potentially benefiting from the plan’s offerings, although they may lose the ability to contribute to it. Transferring the funds to a new employer's plan offers the advantage of consolidating retirement savings, provided the new plan accepts rollovers. Withdrawing all funds is also an option, but it often comes with tax implications and penalties if the individual is under the age of 59½.

These options allow individuals to choose the best path for their financial situation and retirement planning, balancing factors such as investment growth, tax consequences, and accessibility.